HYUNDAI GENESIS

Genesis Gangham, the first standalone showroom for Hyundai’s luxury brand.

Launched in November 2015, the Genesis brand has quietly and steadily continued to transition away from Hyundai to stand on its own. Hyundai’s luxury marque is currently composed of just two models, with a third sedan on the way. By 2020, the Genesis nameplate should include six models — three sedans and three SUVs.

Standalone Genesis Showrooms

The big news right now has everything to do with the way the Genesis markets its products. Currently, Hyundai dealerships carry the Genesis, carving out showroom space to present its two models. Certainly, that’s not an ideal way to advance a luxury brand, something Hyundai Motors will rectify by awarding standalone Genesis dealerships to top-tier retailers.

The Hyundai-Genesis split follows a seven-year test of the brand with American consumers. Beginning with the Hyundai Genesis Sedan, followed by the Genesis Coupe and Hyundai Equus, consumer interest and acceptance was quickly confirmed. Indeed, the Genesis sedan quickly became one of the top sellers in the segment. Moreover, consumers expressed interest in a standalone brand, much in the same way Toyota maintains Lexus.

To begin the transition, Hyundai replaced the Equus with an all-new Genesis G90, while an updated Genesis sedan received the Genesis G80 name. However, the Genesis Coupe did not make the transition and ultimately Hyundai discontinued it. Even so, we may yet see a Genesis sport coupe at some point, but it isn’t a priority for the brand.

The first standalone Genesis showroom opened in early January in Korea. Dubbed “Genesis Gangham,” the new showroom sits in Seoul’s Samsung-dong, Gangnam-Gu, the city’s prime business district. The showroom features a “launch bay,” where the drive experience begins. There, shoppers have a choice of five test drive courses on public roads around the district.

The all-new Genesis G70 sedan arrives April 2018.

US Market Showrooms

As for the US market, Hyundai plans to give some of its 350 elite-level dealers priority to apply for standalone dealerships, according to Automotive News. For the 2019 model year, Hyundai dealers not making the cut will quit selling Genesis product, but will receive compensation from the automaker to cover inventory, training and equipment to service Genesis models and for helping raise Genesis awareness.

Genesis plans to award approximately 100 locations in 48 markets across the United States. Top markets include such major cities as Los Angeles, Chicago and New York as well as San Francisco, Miami and Washington, DC. Some markets will have just one Genesis showroom. Genesis will announce its initial franchise recipients in the coming months, requiring showrooms to open no later than the end of 2020.

New Genesis Product

As for the upcoming product, the compact G70 sedan is on sale in Korea and arrives in the US this Spring. The Genesis G70 targets such models as the BMW 3 Series, Cadillac ATS and the Mercedes-Benz C-Class.

As for the first of three Genesis SUVs, the GV80 Fuel Cell Concept revealed at the 2017 New York International Auto Show likely points to what’s in store. That said, Auto Trends believes the main model will feature a conventional gas-powered drivetrain with a fuel cell or hybrid optional. Hyundai Motors is deeply invested in vehicle electrification, perhaps serving as variants on conventional models such as the GV80.

The Genesis concept points to the brand’s first SUV.

Strong Luxury Sales

Hyundai Motors’ “go slow” approach to growing the Genesis brand comes as US auto sales pulled back slightly in 2017, following seven consecutive years of growth. Luxury model growth has slowed also, but consumers continue to flock to many models with higher price points. Launching a new brand is an extremely expensive and laborious proposition, a cost Hyundai Motors’ will spread out for several years to come.

American consumers continue to shift their new car purchase decisions to crossovers and that move has taken a toll. The Hyundai Azera will soon be no more, putting an end to this flagship sedan’s all-too-brief reign.

12-Year Model Run

The Azera came on the scene in 2006, replacing the previous XG300 and XG350 as Hyundai’s flagship sedan. That reign ended in 2009 when the Genesis sedan arrived and slotted above the Azera, itself usurped in 2011 when the Equus was introduced.

Both the Genesis and Equus were recast as Genesis brand models in 2017, returning the Azera to its flagship status. But only temporarily it seems.

Indeed, the market has been none too kind to the Azera as well as to other full-size models. Some sedans, such as the Toyota Avalon, have fared better, while the Chevrolet Impala, Ford Taurus, and Buick LaCrosse have also struggled.

With deep double-digit year-over-year declines for the competing products, we may see others drop out of the market too. At least traditional rear-wheel drive models such as the Dodge Charger and Chrysler 300 continue to find success in a dwindling market.

The Original Hyundai Azera

The Azera’s appeal was strictly for consumers wanting a large sedan with a powerful engine to go with it. Hyundai complied by serving the 2006 Azera with a 3.8-liter V6 engine with 263 horsepower. In 2007, the Azera gained a smaller V6, a 3.3-liter for its all-new GLS trim.

Hyundai has always positioned the Azera as a premium sedan, although its dimensions were only a few inches larger than the midsize and far more popular Sonata. Besides V6 power, customers could count on standard leather seats, heated front seats, a rear power sunshade, and an advanced audio system.

In 2009, a refreshed Azera debuted with a revised front end and new 17-inch wheels. The look was even more elegant than before and provided the right segue from the Sonata to the upcoming Genesis sedan.

Additional changes in 2011 brought in revised engines with dual continuously variable timing and a notable boost in power. Hyundai also swapped out the five-speed automatic for a six speed, improving fuel economy in the process.

Second-Generation Hyundai Azera

An all-new Azera was introduced in 2012, featuring an even more elegant appearance. An upgraded interior, expanded safety features, and the Hyundai BlueLink telematics system were among the many improvements. Hyundai dropped the larger V6 and introduced an all-new 3.3-liter V6 engine with 293 horsepower. It immediately became the most power dense V6 in its class.

Hyundai continued to update the Azera even as sales never reached anywhere near the company’s goals. Those changes included the latest in telematics and safety equipment and a new, lower price.

Yet, outside of its more popular midsize and compact models, the Azera never made the impact expected. At the same time, Hyundai continued to enjoy strong demand for its two midsize crossovers — the five-passenger Santa Fe Sport and the seven-passenger Santa Fe.

Looking Ahead

Now minus its three largest sedans as well as its Genesis Coupe, the Hyundai brand is pulling back temporarily, but not for long. The Santa Fe will effectively serve as the brand’s flagship, offering the only V6 engine as well.

Hyundai is also upping its green credentials, by rolling out a full line of Ioniq electrified models. A hybrid arrived in dealer showrooms in February and will be followed by a battery electric model in April. Hyundai will round out the Ioniq line when a 2018 Plug-In arrives in the fourth quarter. A Hyundai pickup truck is in the works and another SUV is planned.

Yes, the Hyundai Azera will soon be gone, but that loss should be made up by customers who might move over to a crossover or give serious consideration to the Sonata.